Author Topic: Why are geothermal heat pumps so expensive in Canada?  (Read 3986 times)

Offline TooManyBills

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Why are geothermal heat pumps so expensive in Canada?
« on: May 20, 2008, 09:51:49 AM »
I'm getting rough estimates in the mid- to high $20K range for my 18 yr old 2500 sqft (4100 sqft total) basement walkout two-storey home, based upon a closed loop trenched system with desuperheater in the Brighton, Ontario area.  Everyone, of course, stresses that the government will rebate $7K.

I don't know what a reasonable average cost is for these systems, but at $3K / TON I estimate that my system should cost around $15-18K...  What am I missing?

It seems to me like the rebates may be keeping the market artifically high, and the people benefiting the most from the program are the contractors and / or suppliers. Is there price gouging going on?

I wish I could buy the parts online and subcontract out the work to qualified technicians, via tender or some other market-price process.  I really want to go Green, and need to replace my 18 yr old Air-to-Air Heat Pump, but I can't afford $27K!!

Any comments or ideas?

Offline ProTemp

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Re: Why are geothermal heat pumps so expensive in Canada?
« Reply #1 on: June 05, 2008, 07:12:13 PM »
Get a good HVAC system....Periode ;D

Offline Rustymike

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Re: Why are geothermal heat pumps so expensive in Canada?
« Reply #2 on: July 27, 2008, 10:49:22 AM »
Having installed GSHP' systems for a few yrs, I can but offer some insight as to where the install cost begins.
1- design of the loop system takes a few hours to work out, ie ground type, length of loop to insure proper heat transfer, spacing loop distance, impact of loop design from conventional to reverse loop to drill loop, pump(s) sizing, flow versus developed head.
cost of buying/maintaining the tools to install the loop, fusion welder, loop flushing equipment,
2-cost of the pipe (realize that this pipe is not just your ordinary black poly pipe!)
3- cost of the system fluid that by federal law has to be bio degradable in the event of a leak
4- cost of trenching/supervising the trenching
5-labour to install the loop, make the connections and properly flush the loop and equipment of air
6-cost to advertise
7- minor thing like maintaining a warrenty allowance
8- cost of updated training for the installers
9- certification cost allowance with the supplier and local utilities
and lastly the profit margin, which for those left in the GSHP business is less than 10%

what I think you've failed to take into consideration is the huge investment of time that is involved in installing and commissioning a GSHP versus installing a HE furnace and HE air conditioning unit or heat pump AND the costs, both to install and operate a water heater.
Yes, 7K back from the government doesn't sound like much, but you also need to consider the recurring operating savings you'll gain over the yrs from your new system.

yes, you could purchase the unit yourself and sub contract the install, but I don't think you'll find the savings your thinking you'll get by going this way.

Offline jchaters

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Re: Why are geothermal heat pumps so expensive in Canada?
« Reply #3 on: October 26, 2008, 09:29:00 PM »
Why not replace your unit with an air source heat pump which operates to -25C has COP of 1.79 at -25 and averages 2.7 in our climate.  Cost will be less than half and savings will be excellent. Mitsubishi have a central heat pump system that does just this. Contact me I will send info if you like.

Offline hvacgod

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Re: Why are geothermal heat pumps so expensive in Canada?
« Reply #4 on: June 15, 2009, 10:05:28 PM »
they the best u can buy but there not just expensive in canada they expensive in america..